The taxi company that insists it is only a “Taxi-hailing” app, Uber, suffered another devastating blow to its business model on Friday.
An employment tribunal ruled on Friday that Uber’s 50,000 drivers should be treated as employees rather than self-employed. That means Uber will need to sign with them a contract, grant them sick pay and paid vacations, and ensure they receive a compensation that is no smaller than the minimum wage.
Uber will appeal to the Supreme Court. The UK is by far Uber’s biggest market where it has recently lost its license.
Unions want Uber to continue to operate but to respect minimum employment benchmarks. The GMB union hailed the decision as a landmark decision with implications for the whole gig economy. They urged Uber to accept the ruling immediately rather than waste money and resources. Uber argues that what is at stake is the “flexibility” for which drivers chose to work on the Uber platform.